Good financial behaviors include:
- Establishing measurable financial goals and realistic plans to achieve them
- Building and maintaining an emergency fund equal to three months of take-home pay
- Using a budget to control spending for regular and irregular expenses
- Maintaining adequate insurance for property, liability, life and health exposures
- Paying credit card charges in full every month and keeping non-mortgage debt payments below 15 percent of disposable monthly income
- Saving for retirement through a tax-sheltered plan
- Leaving retirement money where it belongs in retirement accounts prior to actually retiring
- Recognizing that the closer one is to a financial goal that less risk should be taken
- Preparing, and updating a will, advance directive documents and beneficiary and ownership designations on all financial accounts, as needed.
